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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (495)	2/11/1999 7:54:00 AM
From: Dr. John M. de Castro	Respond to of 1386

Issuing a floorless convertible does more than mess up the stock value. It also has the effect of destroying the companies credibility with knowledgeable investors and especially institutions. Long after the overhang is gone and the dilution absorbed, the floorless convertible continues to poison the companies reputation. This is a financial mechanism for the desperate or the foolish. Neither of these traits does much to instill confidence in professional investors. Although the direct effects of PARS - Castle Creek floorless convertible are in all likelihood over, the damage to the companies reputation and standing continues. I am not surprised that there is so little institutional interest in PARS. It will take some time and a solid record of achievement to rectify this situation. That is why the growth in sales and earnings from Alrex & Lotemax are so important. A solid revenue stream would reestablish confidence in the company. Professional investors would the take a closer look at the pipeline. HU-211 is irrelevant to investors if the company is mismanaged and improperly financed. Without both the pros know the HU-211 will never see the light of day. As much as I like HU-211 and feel that it is the future of this company and the eventual ticket to high valuations, I realize that it will never be taken seriously until PARS is taken seriously. Floorless convertibles make this a difficult task. John de C

To: Tony van Werkhooven who wrote (495)	2/11/1999 7:58:00 AM
From: Tony van Werkhooven	Read Replies (3) \| Respond to of 1386

The last several posts on this thread have been on the subject of floorless securities. Just for the record, I just want to emphasize that the current CFO Bob Cook had nothing to do with the company's Castle Creek floorless financing deal. He inherited the "done deal". Also, the new equity financing arrangement put into place by Bob Cook is very different than the Castle Creek deal in that PARS draws on the line only "as needed" and in small amounts. Also, it provides a life line till the company is cash flow positive and leverage in the negotiation for the HU211 partnership. This is probably about as much as needs to be said on this topic. We need to start looking forward again and there is much in the pipeline: 1. Sales progress of Lot/Alrex 2. Phase III LET 3. European filing 4. Co-Marketing partner for ALrex 5. Partner for HU211 and Phase III 6. Tamoxifen analogue Phase I 7. Q4 financial results Tony